Hello Friends! Thanks so much for stopping by and visiting my blog, Stock Picks Bob's Advice. As always, please remember that I am an amateur investor, so please remember to consult with your professional investment advisors prior to making any investment decisions based on information on this website.
The Weekend Review is designed to evaluate the performance of past stock "picks" by reviewing them approximately a year later, advancing a week at a time. This review assumes a buy and hold approach and is not the strategy actually employed in my own trading portfolio which employs sales at 8% losses and small sales of gaining stocks at targeted gains. However, for the sake of review, this "buy and hold" approach serves us well.
On November 10, 2004, I selected ASV (ASVI) for Stock Picks Bob's Advice when it was trading at $44.07. ASVI split 2:1 on 8/25/05, giving me an effective pick price of $22.04. ASVI closed at $33.54 on 1/27/06, giving us a gain of $11.50 or 52.2%. I do own some shares of ASVI in a managed retirement account.
On October 27, 2005, ASVI announced 3rd quarter 2005 results. Net sales for the quarter ended September 30, 2005, grew 70% to $69.2 million, compared with $40.6 million in the same period in 2004. Net earnings for the quarter grew 81% to $8.0 million from $4.4 million the prior year. On a per diluted share basis this came in as a 71% increase to $.29/share compared with $.17/share in the same quarter in 2004. In addition the company raised guidance in the same announcement for both sales and earnings. This was what I call a "trifecta" in a report, increased revenue and earnings and raised guidance!
On November 14, 2004, I posted GameStop (GME) on Stock Picks Bob's Advice when it was trading at $23.50. GME closed at $39.14 on 1/27/06 for a gain of $15.64 or 66.6% since posting.
On November 29, 2005, GameStop announced 3rd quarter 2005 results. Sales came in at $534.2 million, up 28.2% from $416.7 million the prior year. However, same store sales decreased 12% during the quarter. And the company reported a net loss of $2.5 million, compared with $12.0 million in earnings the prior year. This worked out to a per diluted share loss of $(.04) compared to earnings of $.21/share last year. Much of the loss was attributed to the merger with Electronics Boutique. In fact, GameStop announced December same store sales results which came in at a gain of 8.7% as reported on January 5, 2006. So all is not lost at GME :).
So how did I do with these two picks? In a word, fantastic! ASVI was up 52.2% and GME was up even stronger at 66.6% appreciation. The average gain for these two stocks worked out to a gain of 59.4%.
Thanks so much for stopping by! Please remember that past performance is not a guarantee of future performance! If you have any comments or questions, please feel free to leave them on the blog or email me at firstname.lastname@example.org.
Posted by bobsadviceforstocks at 2:24 PM CST | Post Comment | Permalink